Coffee Wars : The Big Three

Coffee, the bean we love. To many it is known as the magic elixir, brain juice, or nectar of the gods, while others see it as the devil in a cup. America is a country that is obsessed with its coffee, now more than ever before. Although coffee has spanned generations, the craze did not exist like it does today. According to anthropologist William Roseberry of UBC, coffee was on the decline in the 1960’s and hit an all time low in the 90’s with only half the country drinking about a cup a day (D’Costa). However, with coffee being the world’s most commonly traded commodity, second to crude oil, much money is at stake when people stop drinking it. Thus the coffee empire was rebuilt, coffee revamped, and redefined to suit the needs of the “me

The brew became so popular in Germany in the late 18th century, that Frederick the Great issued a manifesto in favor of Germany’s traditional drink, beer, and discouraging the consumption of coffee. He was upset by the amount of money leaving the country, and the people’s obsession with the drink, that he banned the roasting of the beans except for in official government establishments, forcing the poor to consume coffee substitutes. They poor eventually got a hold of beans, but were soon discovered by government spies known as coffee smellers. Although there was a brief restriction of the brew, coffee eventually won (Parker 9-15). As seen from the history of coffee, it is evident that coffee has been controversial politically, health wise,

With an increase of Arabica prices after the Brazilian frost in 1997, roasting companies experimented with steam cleaning techniques to hide any bitter flavoring of Robusta when mixing with Arabica. These roasters were also educating themselves on how to use lower quality grades of coffee mixes; thus providing use for previously discarded beans to be sold to roasters who demanded a lower quality beans.

When you buy a cup of coffee in Starbucks every morning to keep you awake through the day, do you ever think of the origins of these coffee beans? How much of those three dollars you pay in Starbucks goes to the Farmers? Personally, I’m not a coffee-drinker. But somehow I realize the big sign in front of Java City in the Reitz Union Food Court, which says “Certified Fair Trade Coffee.” I’m surprised how few students know what it means. Currently, farmers in Brazil and Vietnam grow the majority of coffee beans.

According to Harvard’s School of Public Health, 54 percent of Americans over the age of eighteen drink coffee every day. The daily consumption of coffee for Americans is an average of 3.1 (9-ounce) cups. The popular demand for coffee is because caffeine is the key ingredient. Caffeine is used as a kick-start for most people in the morning for an extra energy boost. However, once that feeling of extra energy subsides the human body begins to feel exhausted. A new product that we wish to add to the menu will be an invigorating lemonade. This new product will only be offered during the summer months of June, July, and August. Depending on how well our clients respond to our new drink, we will eventually add to the flavors of lemonade available.

| “Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores”

Every morning in the United States about 240 billion ounces of coffee are consumed (“Coffee by the Number”). This immense amount of coffee fuels one of the most productive workforces in the world and has become a staple to the modern American diet. Despite being consumed mostly by North Americans and Europeans, coffee’s origins go back to Africa and it’s cultivation to Latin America. Coffee is one of the most interesting and prevalent commodities in the world and merits an analysis of its commodity chain.

Coffee was the top source of income for 25 million farmers in Latin America, Africa and Asia. Due to the lack of appropriate compensation for their harvest, communities in coffee- producing countries around the world are suffering. Coffee is a chief export for many developing nations and their entire economies are collapsing with the market. In 2004 the governments of coffee producing countries were adamant in finding the answer to the dramatic decline in coffee prices.

We live in a world today where the global community is intertwined with many other nations trading, importing and exporting their national resources for other products that may not be native to the nation one lives in. One example of this is Coffee. Many 1st world nations indulge on this commodity yet very few nations actually grow and import coffee. The word “coffee” comes from Kaffa, a region in Ethiopia where it is believed the coffee bean was discovered.

To begin, The Coffee Crisis is about an acute coffee crisis and how it threatens millions of small coffee farmers around the world and is putting economic growth, as well as social and political stability, at risk in scores of coffee producing countries in Central and South America, Africa and Asia. In 2004, the governments of coffee producing countries were considering how to respond to the dramatic decline in coffee prices caused in part by a large increase in coffee production in Brazil and Vietnam. Coffee was the main source of income for roughly 25 million farmers, mostly small land holders, in Latin America, Africa, and Asia. Coffee prices had hit 40 year lows in 2001 and had remained

Company rivalries have always existed in the free market, each trying to dominate the consumer of their respective product. Microsoft vs. Apple. Ford vs. Chevy. Dunkin’ Donuts vs. Starbucks. The latter two focus attention on the coffee-fueled masses, rushing to work on a weekday morning or relaxing with their wifi whilst sipping java. By exploring my local Dunkin’ Donuts and Starbucks coffee shops, I was able to glean some interesting insight into the two rival’s 4P marketing approaches. Despite having a seemingly similar goal of selling the most coffee, breakfast, and lunch type products to consumers, Dunkin’ Donuts and Starbucks parade their product, price, place, and promotion each to a different drum.

Coffee – for some, a morning cannot begin without it. Many daily rituals include it. It

In the competitive world of the coffee industry, or any industry for that matter, it is essential for companies to have a clear understanding of what they do best, and where they can be the best. Dunkin’ Donuts is well known by generations and loved by a growing number of customers around the world. It was first established in 1950, in Quincy, Massachusetts, by William Rosenberg. Back then, William had a simple philosophy: “Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores” (Dunkin’ Donuts, 2008). That philosophy still holds true today and is the foundation that has enabled

THE MARKET In the competitive world of the coffee industry — and any industry for that matter — it’s crucial for companies to have a clear understanding of what they do best, and where they can be the best. Dunkin’ Donuts has defined its strategic heartbeat as the everyday, easy coffee stop that inspires rituals that revive. In other words, Dunkin’ Donuts provides food and drink that’s fast, fresh, and affordable — for busy people, leading busy lives. These days there is an incredible interest across the country in premium coffee. The average consumer is now demanding what Dunkin’

Since 2004, the value of Starbucks in the market dropped constantly. Therefore researchers found that the 'designer coffee' market just a fad. Recently, the problem was occurred is how to extent their product life cycle and maintain customer relationship. Although we knew that Starbucks had done a lot of effort on CRM. As we can see the market competitions will become more challenging, especially Dunkin Donuts. Dunkin provides the donuts but also compliment with coffee, the coffee becomes one of competitive products in Starbucks. (Zack, Chen, Calvin, Kevin, & Michelle, 2008) In order to overcome the value decline and the profitable issue of Starbucks, Starbucks should consider strategies that provided at below.